INDO-NEPAL TREATY OF TRANSIT BEING EXTENDED India and Nepal have agreed to renew the Nepal India Treaty of Transit of 6th December, 1991 with mutually agreed modifications. Pending the formal signing of the documents after the completion of the relevant procedures, the two governments have agreed that the validity of the existing Treaty of Transit, which expired on 5th December, 1998 shall be extended by one month, i.e. up to 5th January, 1999 or till the date of its formal renewal, whichever is earlier. Necessary instructions are being issued to ensure that the movement of Nepal’s transit-in-traffic between Calcutta and the fifteen mutually agreed entry and exit points along the Nepal-India border will continue smoothly. Additional transit routes, including through Phulbari, Radhikapur and by air, will also continue as before. The mutually agreed draft Transit Treaty to be signed shortly will have simplified procedures for the transit of Nepalese import and export cargo, compared to the existing Transit Treaty, according to a Joint Press Statement from Kathmandu issued by Commerce Ministry. RIVER AGREEMENTS BETWEEN INDIA AND NEPAL June 3,1998 India and Nepal entered into an agreement in April, 1954 for construction of a barrage on Kosi river. This was revised in December, 1966. Another agreement in December, 1959 was entered into for construction of a barrage on Gandak river. This was revised in April, 1964. Both the barrages lie in the territory of Nepal near the Indo-Nepal border and had been in operation for the last three decades. These barrages serve the purpose of irrigation and hydro power generation benefitting both the countries. During February 1996, India and Nepal signed a Treaty on Integrated Development of Mahakali River for which the centrepiece is the Pancheswal Multipurpose Project proposed to be located on Mahakali river at a stretch which forms the boundary between the two countries. Irrigation and hydropower benefits are envisaged from this project for both the countries and for which a detailed project report is under preparation jointly by India and Nepal. This was stated by the Minister of State for Agriculture, Shri Sompal in a written reply to a question by Shri Harikewal in the Lok Sabha today. INDO-NEPAL TRADE & TRANSIT ARRANGEMENT REVIEWED April 2, 1998 Bilateral trade and transit arrangement between India and Nepal were reviewed by the Commerce Secretaries of the Government of India, Shri P.P. Prabhu and the Government of Nepal, Shri M.D. Pant, here on 30th and 31st March, 1998. Talks between the two secretaries and their respective delegations comprising senior officials from Commerce, External Affairs, Finance and other concerned Departments of government were held in an atmosphere of utmost cordiality and were marked by a positive and constructive approach with a view to facilitating smooth flow of trade and operation of transit facilities accorded to the Government smooth flow of trade and operation of transit facilities accorded to the Government of Nepal by Government of India, under the provisions of respective bilateral treaties. It may be recalled that the Government of India had in consideration of friendly relations enjoyed between the two countries, permitted transit movement of Nepalese cargo to Bangladesh by road via Kakarbitta-Phulbari-Banglabund route in September '97, subject to certain operational modalities. These included specified movement of trucks under escort only on Saturday and Sunday, movement of containerised trucks, duty insurance etc. Reviewing these modalities during the talks, it was agreed to allow Nepalese transit cargo to move on this route on two week days as well in addition to Saturday and Sunday and also explore possibilties of an alternate route by-passing Siliguri town, so that the facility could be more useful and econimical for Nepalese importers and exporters. It was also agreed to waive insurance requirement on this route on an undertaking by Nnpal Transit and Warehouse Company Ltd., to compensate the Government of India for possible revenue losses in the event of diversion of transit goods into Indian territory. Satisfactory agreements were also reached on various other issues relating to the simplification of documentary requirements and facilitation of procedural formalities in connection with the clearance of transit cargo. |